akme star housing finance limited
TRANSCRIPT
Akme Star Housing Finance Limited
We do not tender Loans, We tender Happiness
Corporate Overview
www.akmestarhfc.in
Registered Office:
Akme Business Centre (ABC), 4-5 Subcity Centre Savina
Circle, Udaipur - 313002, Rajasthan
Corporate Office:
708, Accord Classic, Goregaon East,
Mumbai - 400063 +91 8828 0366100294-2489501/02/03
About
Akme Star
HFC
• Founded by Late Shri. Mohan Lal Nagda and Shri. Nirmal Kumar Jain
• Incorporated in 2005 and commenced business operations in Sep 2009
• Shares listed on Bombay Stock Exchange (BSE) on March 2015
• Operates with a philosophy of Providing credit access to Lower and Middle Income segment predominantly in
unchartered areas
• Qualified as a Primary Lending Institution under Pradhan Mantri Awas Yojana (PMAY)
• Loan book of Rs. 89.65 crs as with 1058 live accounts as of Dec 31, 2020
• Funding received from National Housing Bank, SBI and other banks / financial institutions with a gearing of
0.98x
• Long term credit rating : BWR BBB - / Stable by Brickwork Ratings
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
VisionTo let the people feel the warmth of their “own house” by delivering quality financial
product both in appearance and content
We want to be known as an organization where personal attention will never become obsolete
We want to employ people who are extremely satisfied and go the extra mile for clients
We want a culture of growth, profitability and enthusiasm throughout the company
Mission
Values• Seeking Excellence
• Accountability & Ownership
• Teamwork & collaboration
• Integrity
• Nurturing Lives
• Shri Nirmal Kumar Jain, founder member Akme
Group and Executive Director of Akme star HFC
• He is a C.A. and Cost Accountant by qualification
• Mr. Jain has been awarded “Yuva Gaurav” by
Mahaveer Yuva Sansthan, Udaipur and “BusinessLeader Corporate” 2nd Rank by Institute of
Chartered Accountants of India
• Shri Ashish Jain is a mortgage professional and
second generation of promoters of Akme Group
• Shri Ashish is the Chairman and Managing
Director of Akme Star HFC and is responsible for
steering the growth of the Company
• Shri Ashish is a B.E. and did M.Sc. from London
Shri. Nirmal K Jain
Shri. Ashish Jain
Key Management Overview
Name Designation
Shri. Natesh Narayanan Chief Financial Officer
Shri. Kalpesh R Dave Head - Corp. Plan and Strategy
Shri. Ashish Kothari Head - Operations
Shri. B.S Kacchawaha Chief Risk Officer
Shri. Paritosh Kothari Company Secretary
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Our Presence
Cumulative experience of more than 125 years in Financial services space
Udaipur Mumbai Pune Indore ChennaiSuratAkola
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Nurturing Lives
Create value for all
stakeholders of Akme
Star HFC, be it customers,
vendors or employees
“Do it better together”
Strength and Stability -
both Moral & Financial
Answerability and
responsibility for the
outcome of the task at hand
Perfection and Excellence
leading to Sustained
growth of Akme Star HFC
Teamwork and
Collaboration
Integrity
Accountability &
Ownership
Seeking
Excellence
More than 1300 customers have reposed
their faith in Akme Star HFC towards
availment of housing finance assistance
towards purchase of their own home
Akme Star HFC has been build on these values
and validated by the trust of the customers:
Core Values
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
July 2017
Stock migrates to BSE
Main board. Shares of
Akme Star HFC get
traded on Bombay Stock
Exchange (BSE)
Oct 2019
AIPL invests incremental
capital in Akme Star HFC
thereby acquiring 21.5% non
controlling stake in the
Company
Nov 2019-Till Date
• Deployment of core lending suite (Jaguar) & mobility
apps (Credility)
• Expansion of physical presence to Maharashtra, Madhya
Pradesh, Tamil Nadu & Gujarat (Head Office in Mumbai)
• On Boarding of experienced mgmt. team to augment
overall business
• Shri. A.P Saxena (ex NHB official) inducted on the board
Mar 2005
Incorporated with the
objective to provide
housing loans to target
EWS/LIG segment
Dec 2009
Received CoR from
National Housing Bank
(NHB). Initiates business
operations in Rajasthan
as Akme Star HFC
Mar 2015
Akme Star HFC gets
Listed on SME platform
of the Bombay Stock
Exchange (BSE)
Gearing up for next level of Growth
Journey and Milestones
HIG > 18 Lacs
MIG-II 12-18 Lacs
MIG-I 6-12 Lacs
LIG 3-6 Lacs
EWS Up to 3 Lacs
*classification as per PMAY
guidelines
Informal IncomeSemi Formal
IncomeFormal Income
Income needs to be
assessed
Blend of documented
and assessed income
Fully documented
income
Extended Suburbs
of Metros/Urban
Agglomerations Main City
Extension
Satellite towns of
urban centres
Tier II, Tier III and
Tier IV cities
Target Customer Segment (Income)
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Target Geographies
Home loans (New Purchase/Resale)
Construction loans
Composite loans
Home Extension loans
Home Improvement loans
Non Housing loans
Residential Real Estate Developer loans (Low Cost Housing Space)
Product
Offerings
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Products Home Purchase Loans Construction LoansImprovement /
Extension LoansBalance Transfer Loans
PurposePurchase of New unit
from developer
Purchase of resale
(existing) unit
Construction of housing
unit on own land
Upgradation/modification
of existing housing unit
Takeover of housing loan
from an approved financier
Collateral Underlying housing unit to be purchased/constructed/upgraded/modified
Disbursement Mode Bullet BulletStaggered with stage of
construction
Staggered with stage of
upgradation/modificationBullet
Ticket Size (Rs.) 2-25 lakhs 2-25 lakhs 2-25 lakhs 2-15 lakhs 2-20 lakhs
LTV Up to 80% Up to 80% Up to 80% Up to 80% Up to 70%
Loan Tenure Minimum: 5 years; Maximum: 20 years
Repayment Equated Monthly Instalments
Akme Star HFC has a range of retail financing products to cater to the financing needs of EWS/LIG customers towards
purchase of housing units
Product Offerings
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Loan Book Overview (As of Dec 31, 2020)
Geographical Split*
74%
25%
1%
Up to 50%
50-80%
>80%
Ticket Size Split
69%5%
26%0 to 25 lakhs
25 to 50 lakhs
> 50 lakhs
Urban vs. Rural Split
82%
18%
Rural
Urban
Loan to Value Split*
38%
62%
Salaried
Self Employed
Occupation Type Split
40%
60%
Direct
Business Associates
Sourcing Split*
*Calculated on Loan Amt Outstanding. Rest of the splits are calculated on the no. of live accounts for meaningful representation
58%18%
20%
3%1%
Rajasthan
Madhya Pradesh
Maharashtra
Tamil Nadu
Gujarat
Shareholding Details (As on Dec 31, 2020)
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
As on Dec 31, 2020
Closing Share Price: Rs.86.90
Market Cap: Rs.136.20 Crs
EPS: 1.47
Price/Book: 2.54
Category of
shareholder*
No. of
shareholders
No. of fully paid up
equity shares held
Total no.
shares held
Shareholding as a % of
total no. of shares
(A) Promoter &
Promoter Group31 69,52,500 69,52,500 44.35
(B) Public 879 87,21,000 87,21,000 55.65
(C1) Shares underlying
DRs0.00
(C2) Shares held by
Employee Trust0.00
(C) Non Promoter-Non
Public0.00
Grand Total 910 1,56,73,500 1,56,73,500 100.00
*Arkfin Investments Private Limited (AIPL) has infused incremental capital of Rs.15.5 crs in Akme Star HFC on 26th October 2019
and has acquired 21.5% stake in the expanded capital of the Company
Key Financials*
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Balance Sheet as for the period
Particulars31-12-2020 30-09-2020 31-03-2020
Unaudited Unaudited Audited
Assets
Cash & cash equivalents 54 169 110
Bank balance other than cash & Cash
equivalents20 - -
Loans 9745 8607 8269
Investments 356 356 356
Other Financial Assets 475 345 105
Deferred Tax Assets (Net) 30 40 36
Property, Plant & Equipment 113 121 100
Intangible Asset 40 35 20
Other non-financial assets 41 97 97
Total Assets 10875 9771 9094
Liabilities
Borrowings 5314 4300 3770
Other financial liabilities 64 51 36
Provisions 28 20 10
Other non financial liabilities 7 19 31
Total Liabilities 5413 4390 3847
Equity
Equity share capital 1567 1567 1567
Other equity 3895 3813 3680
Total Equity 5462 5381 5247
Total Liabilities & Equity 10875 9771 9094
Profit & Loss statement for the Period
ParticularsApr-Dec 2020 Apr-Mar 2020 Apr-Mar 2019
Unaudited Audited Audited
Income
Interest Income 1141 1578 1161
Fees & Commission Income 13 12 11
Gain / (Loss) on derecognition of
financial assets(11) - -
Total Income 1143 1590 1173
Expenses
Finance Cost 361 492 451
Impairment of Financial Instruments 62 83 5
Employee Benefit Expenses 259 203 75
Depreciation & Amortization expenses 10 4 3
Other expenses 110 197 42
Total Expenses 800 978 577
Profit Before Tax 343 612 595
Tax Expenses
Current Tax 107 149 157
Deferred Tax 6 (40) 29
Profit After Tax 231 504 410
* As per INDAS
All figures in Lakhs
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
ARKFIN group has
invested and
partnered with Akme
Star HFC as an active
investor to grow the
company multi-fold
under a common
business vision
Minority
Investor
Affordable
Housing
Focus
Active
Investor
High Growth
Strategy
ARKFIN is a minority investor in Akme Star
HFC and looks for a long term journey with
the current management in retail low cost
housing finance space
• ARKFIN intends to actively
participate with the management in
Akme Star HFC
• ARKFIN seeks to leverage its
members’ deep industry experience
to support the company’soperations
Affordable Housing focus of Akme Star
HFC will be further strengthened through
this investment partnership – focusing on
LIG and EWS category in urban outskirts
and Tier II, III and IV cities
ARKFIN intends to use its experience of growing HFC
business enabling growth of Akme Star HFC through
geographical expansion, experienced mgmt. across levels,
leveraging technology and robust risk framework to ensure
growth backed by quality
ARKFIN’s Strategic Investment as an Active Investor
• A decade in business operations
• Equity base of Rs.27 crs
• Shares listed on BSE
• Consistently making profits
Journey Till Mar 2019 Actionable Resulting Into
Issuance of 21.5% additional shares
to Arkfin groupIncremental addition of Rs.15.5 crs capital
Business operations through customized
lending suite
• Deployment of Jaguar
(core lending platform)
• Deployment of credility
(mobility solution)
• End to end processes covered through
technology
• Mobility enables efficient processing and
handling increased volumes
Focus on Self Employed customer profile
in the state of Rajasthan
• Focused lending under PMAY
• Customer mix of 60:40 (SE: Sal)
• Average Loan size: Rs.10 lakhs
• Loans qualifying under Priority Sector
Lending (PSL)
• Customers benefiting from Govt. policies
Loan Book of Rs.63.27 crs with 682 live
accounts. GNPA of 1.72%
Expansion of geography from Rajasthan to
Madhya Pradesh, Gujarat, Maharashtra and
Tamil Nadu
Planning of business ramp up
targeting loan book of Rs.100 crs
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Taking Definitive Steps towards Transformation
Currently having liability program with five
public and private financial institutions
• NHB Refinance availment
• Adding more PSU Banks
• Adding more Pvt. Banks / FIs
• Lowering cost of Funds
• ALM matching
• Diversified liability program
• A veteran with more than
three decades of
experience in retail small
ticket lending
• Has been responsible for
discovering micro markets
in Mumbai Metropolitan
region (MMR)
• Responsible for establishing
and scaling up business in
MMR
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Key Additions to Akme Star HFC from ARKFIN
• More than 15 years of experience in liability / funding
side of the business
• A known name in the industry, he has nurtured
relationships with bankers, fund managers, business
associates, and rating agencies
• He carries a mandate to strengthen the liability side of
business in line with long term business plan
Natesh Narayanan
Chief Financial OfficerKalpesh R Dave
Head Corporate Planning & Strategy
• Mr. Kalpesh has more than 12 years of experience in
financial services space with a proven track record in
planning and strategy
• Strong skill set to enable scale up of overall business
operations and seamless execution of strategic initiatives
• Expected to play a meaningful role in the transformation
and build up phase of Akme star HFC
Dhanwant Singh Bala
Head Mumbai
Rajesh Gopinath
Head Tamil Nadu
• More than two decades
experience in states of
Tamil Nadu and Kerala
• Understands the dynamics
of local markets and has
been successful in building
a franchise
• Has developed high
quality loan book in these
states in previous
associations
Shakir Sheikh
Mentor, Madhya Pradesh
• A Veteran in Madhya
Pradesh housing finance
market with more than
three decades of
experience
• Has developed key
relationships all
stakeholders including
reputed developers,
business associates, and
finance professionals
Core Lending Suite Supported by Enterprise Mobility Solutions
• A holistic technology platform to support processing through core lending suite supported by enterprise mobility solutions
• A comprehensive and integrated loan management system that can address day to day operational challenges in a strategic manner
• A flexible, secured, high available technology platform offering dynamic work environment to the end users including - the
management, operations, customer and 3rd parties involved
• Enterprise Mobility Solutions deployed to improve efficiency and streamline processing on mobile
Loan Origination
Application processing
Workflow management
Business Rule Engine
Product definition
Credit decisions
Technical & Legal decision
Loan Processing
Operation / Documentation
Disbursement
Accrual & Due creation
Delinquency Monitoring
Repayment Handling
Loan enhancement/Top-up
Pre Closure / Loan Closure
Loan Management
Debt management
Portfolio Allocation
Queue Maintenance
Follow-up
Alerts and Escalation
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Branch Office
Project Office
Resident Office
• Traditional brick and
mortar presence at
selected locations
• Business sourcing through
In-house team and
supplemented by business
associates
• On site presence across
pre-approved projects
• Direct business sourcing
through collaboration with
the associated developer in
residential space
• Manned by Resident
Officer operating from own
premises
• The officer in charge is
responsible for business
and managing the portfolio
Technology platform supported by
mobility applications
End-to-End processing of loan
applications done digitally
Centralized Processing and Decision
Making. Better control and build up of
quality loan book
Akme Star HFC Risk Framework
Creation of Robust Business Model
Reaching out to:
• Builders / Developers
• Quality sales profiles: to strengthen in
house sourcing
• Business Associates (DSA / Connectors)
• Insurance partners (Life/Non Life/Health)
• Third Party associates (Legal/Technical)
• Key business vendors
Marketing/Branding
• Presence on digital platform: social media
(LinkedIn / Facebook / twitter), website
and online marketplace
• On ground venue/lane mktg: Loan Mela,
Loan on Wheels, spot sanction drive,
medical check up camps
• Print/TV media at local and regional level
• Participation in summits, property
fair/exhibitions
• Increased presence across key affordable
housing projects across locations
• Enhanced direct sourcing from relationships
• Strong In house sales team supplemented by
increased traction from business associates
in DSA driven markets
• Rationalization of legal/technical related
expenses and key opex. line items through
relationship mgmt.
• Enhanced enquiries, allocation of leads to
branches and follow up
• Measurable efficacy of the on ground
branding efforts through enquiries, lead
generation and subsequent conversion
(Branch / Unit head is responsible)
Clear focus on
establishing Akme Star
HFC as a customer
centric and tech
enabled meaningful
player in low ticket
affordable housing
finance space across
major markets
Transformation through Business Development Initiatives
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Loan Origination
Through Business Associates / Direct
Loan Application
•FI Report
•Application Fees
Verification by Credit Officer
CIBIL / FI / Tele / Ref. Check
Credit Decision
(In Principal)
Collection
Photos + Reference
Verification + FI
•Legal
•Technical
Appraisal
Sanction & Disbursement
Business associate helps in execution
Current Process
Origination
• In-house
• Business Associate
• Direct
Application & Cash flow Assessment
•Electronic application through Tab
•Application fees
Branch Credit Officer and HO Credit Verification
•Credit Bureau check
•Physical KYC check
•Field Visit
HO Appraisal (Mobility App)
• Legal
• Technical
HO Operations Team
HO Ops team to mortgage and get the signed docket
Recommendation by BM to HO;
Verification by HO Credit and Operations
Operations Team -Sanction and
Cashless Disbursement
Way Forward
Transformation of Loan Origination and Disbursement Cycle
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Statutory Auditors
Internal Auditors
Chief Risk Officer
Management
Council
Board of
Directors
Real Time Risk Management
Business intelligence reports
Data mining
Business performance review
Branch profitability
Early warning signal
Rating Partners
Regulators
(NHB/RBI)
Identification and isolation of business risks through a. centralized decision making set up b. digital platform c. capturing data
related to business risk through data science enabling strategic alignment through changes in policies and guidelines
Engagement with internal/external stakeholders to ensure book is without systemic anomalies/surprises on sustainable basis
Holistic Risk Management
Current housing
shortage of 60
million units
Need to develop
more than 110
million units by
2024-25
CAGR: 10.63%
• Projected investment of more than $2 trillion in housing and 250+ ancillary industries
• Urban housing to account for 85-90% of the total projected investment
• Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Uttar
Pradesh to form more than 3/4th of the total housing requirements
• Low Cost housing units (up to Rs.40 lakhs) for LIG households constitute more than half of urban housing requirements
Urban: 20 million
Rural: 40 million
Urban: 50 million
Rural: 60 million
CAGR: 16.50%
CAGR: 7.00%
Source: Decoding Housing for All by 2022: KPMG-NAREDCO, Industry reports
This translates to current latent demand of more than 10 mn low cost housing units and
projected demand of more than 25 mn low cost housing units by 2024-25
2017-18 to 2024-25
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Demand for 25 mn housing units
HFC-retail credit grew by
CAGR of 14.03% for the
period Mar-12 to Mar-20
Total credit outstanding at
Rs. 21 trillion as of March
31, 2020
The HFC space is expected
to grow at 16-18% CAGR
over the next 10 years
2.1
7.24.2
13.8
0.0
5.0
10.0
15.0
20.0
Mar-12 Mar-20
Banks
6.3
Strong growth in Housing CreditIn Rs. ‘000 Bn
HFCs
• HFCs have outpaced Banks in growth
• HFCs have Gained market share (currently at
34%) over the years
• HFCs are expected to continue the same
performance in the next decade
10
19 20
40
65 65
0
14
28
42
56
70
India China Thailand Germany UK US
Mortgage to GDP ratio for India remains
comparatively lower…
…Reflecting enormous potential for further growth• Industry to exhibit 16-18% CAGR for the next 10 years
• Projected 30% CAGR for HFCs in affordable space
• Housing credit outstanding to be doubled by 2024-25
• Housing credit to GDP ratio to increase to 14-15%Source: ICRA mortgage market report, Industry reports
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: A $400 Bn business opportunity
21
5.34.8
4.1
0.0
2.0
4.0
6.0
2001 2011 2026E
No. of People per FamilySource: ICRA mortgage market report,
Industry reports
Traditional large joint families
are breaking up into small
nuclear families
Modern day space/ privacy needs lead to constant upgrades to larger apartments
This process gives Housing Finance opportunity at all transaction levels
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Rising Nuclear Families
Rising Urban Population
27%30%
38%
0%
13%
26%
39%
2001 2011 2026E
% of population residing in
urban areasSource: ICRA mortgage market report,
Industry reports
Relentless migration has given rise to Slums in most large cities
HFCs are involved right from the first upgrade
Every transaction thereon presents additional funding opportunity
Migration to Urban areas Usual Entry Level Housing First Upgrade from Slum
Second UpgradeThird Upgrade
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Migration / Upgrade
0
15000
30000
45000
60000
No of Households
2 per. Mov. Avg. (No of Households)
Number of Households with a disposable income of more than $10,000 p.a. (more than ~Rs.6 Lakhs p.a.)*
Source: Euromonitor International/UN. Avg. exchange rate of ~Rs.60 = 1USD. Average of daily rates for the period Sep 2010-Sep 2018
Households having disposable income of more than Rs.6 Lakhs p.a. increased from 2.5 mn in 1990 to more than 50 mn in 2017-18
This increase has transformed India into a middle class society within two and a half decades of liberalization
Impact
1. Upsurge in the number of first time home buyers looking to purchase an own home
2. Resultant increase in the demand for housing units especially in the 25-50 lakh price unit segment across the fringes of
metros, semi urban and satellite centres
3. Enormous potential for financiers with a positive long term outlook as Indian middle class is set to expand in future
‘000
hou
seho
lds
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Increase in Income Levels
Government of India’s Flagship Program “Housing for All”Pradhan Mantri Awas Yojana (PMAY)
Supply Side Intervention Schemes Demand Side Intervention Schemes
• In-Situ slum redevelopment: Utilization of land under slum
• Affordable housing in partnership with private and public
sector
• Credit Linked Subsidy Scheme (CLSS)
• Subsidy for Beneficiary-led individual house construction /
enhancement
Target to construct 20 million houses targeting EWS/LIG/MIG households
Projected financial assistance of Rs.2,000 bn till 2022 from central government
• Infrastructure status accorded to affordable housing sector
• Benami Transactions (Prohibition) Amended Act, 2016
• Implementation of Real Estate Development and Regulation Act
(RERA)
• Real estate transactions brought under the ambit of Goods and
Services Tax (GST)
Enhanced
Budgetary and
other SupportIncreased transparency,
accountability and
speedy redressal of
disputes
Enhanced flow of credit
to the sector
Source: MHUPA website, Press release
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Increased Govt. Support
Loan Value LTV Risk Weight
Up to Rs.30 lakhs Less than 80% 35%
Up to Rs.30 lakhs 80-90% 50%
Rs.30-75 lakhs Up to 80% 35%
Greater than Rs.75 lakhs Less than 75% 50%
Other housing loans (Not qualified in above) 100%
LTV and Risk Weights:
A move to ensure
adequate capital
buffer
Provisioning norms:
Tightening the belts to
avoid any leakages
Loan CategoryStandard Asset
Provisioning
Individual housing loans 0.25%
Commercial real estate
residential housing0.75%
Commercial real estate 1.00%
Provisioning norms:
Conservative approach towards provisioning for NPAs
NPA Type No of Days Provision
Substandard Assets 91-455 days 15%
Doubtful Assets
Up to 1 year 456 days to 820 days 25%
1-3 years 821 days to 1550 days 40%
Greater than 3 years 1551 days and above 100%
Loss Assets - 100%
Source: NHB website, ICRA mortgage market report
• The RBI is the regulator for NBFCs and HFCs. Refinance assistance continues to be handled by The National Housing Bank (NHB)
• Despite at lower levels of mortgage penetration which preclude a possibility of major meltdown, the Regulator has learnt from the pitfalls of
developed countries and has put in place several checks and measures through a) exposure limits, b) asset quality and c) capital requirements
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Robust Regulatory Environment
Infrastructure status
accorded to Affordable
Housing
Benami Transactions
(Prohibition)
Amended Act, 2016
Real Estate
Development and
Regulation Act (RERA)
Goods and
Services Tax
(GST)
Insolvency and
Bankruptcy code
Regulation
▪ Enhanced flow of
credit to the sector
▪ Lowering of
borrowing cost at
the project level
▪ Simplification of
approval processes
▪ Minimization of
fraud / collusion
▪ Greater
transparency
▪ Keeps
questionable
entities at bay
▪ Increases
transparency
▪ Imposes greater
accountability
▪ Protects the
interests of home
buyers
▪ Replaces multi
layered taxation with
single tax
▪ GST @ 5% for under
constn. projects and
@ 1% for affordable
housing projects
▪ Brings seriousness to
resolve bad loans
▪ Treats home buyers as
creditors (at par with FIs)
▪ Strict vigilance over
developer in case of
default
Impact
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
Indian Housing Finance Sector Overview: Reforms Paving the Way
This presentation may contain statements about events and expectations that may be “forward-looking,” including those relating to general business plans
and overall growth strategy of Akme Star Housing Finance Limited (“Akme Star HFC") and its associated/subsidiaries/JVs, its future outlook and growth
prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these
forward-looking statements due to a number of risks and uncertainties, including future changes or developments in Akme Star HFC and its
associates/subsidiaries/JVs, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and
political, economic, regulatory and social conditions in the Country. All financial data in this presentation is obtained from the Financial Statements for
FY’2018-19, FY’2019-20 and FY’ 2020-21 on the basis of which key ratios are calculated.
The purpose of this presentation is to provide general information to prospective investors in a manner to assist them in making investment decision. It
does not purport to contain all the information that the prospective investor may require.
The presentation is made for informational purposes only and should not be regarded as an official opinion of any kind or a recommendation. It does not
constitute an offer, solicitation or an invitation to the public in general to invest in Akme Star HFC. This presentation is intended for the use of prospective
investors only to whom it is addressed and who is willing and eligible to invest in Akme Star HFC. The information contained in this presentation is obtained
from sources believed to be reliable. We do not represent that any information, including third party information, is accurate or complete and it should not
be relied upon without proper investigation on the part of investor(s).
Akme Star HFC or any of its director(s) or employees does not assure/give guarantee for any accuracy of any of the facts/interpretations in this document,
and shall not be liable to any person including the beneficiary for any claim or demand for damages or otherwise in relation to this opinion or its contents.
All investors must consider the risk factors, do their own analysis and/or avail expert professional help to arrive at an investment decision.
Thank You
Contact details:
Kalpesh R Dave: 9152021863
Akme Star Housing Finance LimitedWe do not tender Loans, We tender Happiness
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